PruProtect Education Cover
PruProtect has launched no less than seven new products including whole of life cover and family income benefit.
This review focuses on the unique Education plan. This product covers the cost of school and tuition fees in the event of a parent’s death. The plan’s key details are:
• On death of a parent pays £750 per school term per child covered.
• Or, the Private School option pays school fees, up to £10,000 per term per child.
• £1,000 star award if a child excels in a particular discipline e.g. grade 8 in a musical instrument.
• Tuition fees paid for children in higher education.
• Or £3,000 a year for five years if they do not go into higher education.
• Benefits reviewed annually to allow for inflation.
• One-off £1,000 payment if hospitalised for more than 10 days or off school ill for more than 20 days.
• Free serious illness cover on the child’s life. This pays up to £5,000 per family.
• Access to the Vitality programme.
The plan is available in three variants—State (for children in State education), Private School-Day, and Private School—Boarding.
Plus points: A few insurers have launched school fees programmes in the past but, except in a handful of cases, they have not been successful and have focused on investments to fund future school fees rather than protection; This plan should appeal to parents who want hypothecated cover for their children to ensure they get a good education; Good range of benefits and realistic, affordable cover levels; The Accelerator (low start) option can keep initial premiums even lower.
Not so plus points: Would have been even better with a PMI option; Could discourage parents from having sufficient life cover overall, but as too many people have little or no life cover, that criticism can be discounted—this plan could open up a whole new market.
Website: http://www.pruprotect.co.uk/adviser.
Rating (max 10): Innovation: 9.5. Overall: 9. Platinum.